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Vinatex to raise capital through public issue
06
Jan '12
Vietnam National Textile and Garment Group (Vinatex) – the largest entrepreneur in Vietnamese garment industry – plans to raise capital this year by issuing equity shares of its remaining affiliates and holding group.

The capital so raised would be utilized for expanding production capacity and improving Vinatex's competitive edge in international market, according to Le Tien Truong, Deputy Director General of the Group.

Currently, the charter capital of Vinatex is about VND 3.4 trillion (US$ 162 million) and its revenue through exports is around 14 times more. Hence, privatization would play a vital role in Vinatex's development strategy in 2012, Mr. Truong said.

He added that it would be easier to privatize the affiliates of the Group as majority of them are small firms. He mentioned that Vinatex would try to complete the privatization procedure for the entire group this year, although it would be a difficult task.

Besides privatization, Vinatex plans to focus on market forecasting and would explore new markets like Russia and Canada this year. Despite economic slowdown in its key markets last year, Vinatex was able to achieve good business due to market forecasting, Mr. Truong said.

He stressed that Vinatex would take benefit of free trade agreements with Japan, China and South Korea, as these are vital in the current scenario when its major garment importing nations like the US and the EU are facing economic problems.

In order to maintain its focus exclusively on the textile and garment sector, Vinatex also plans to withdraw all its existing capital of VND 170 billion from its non-core businesses.

Moreover, the Group will invest in training facilities as well as in latest machinery and technologies.

On the domestic front, the Group plans to add 14 more Vinatex-Mart outlets taking the tally of its stores to 75.

Last year, Vinatex grossed export revenue of US$ 2.4 billion, registering a rise of 26 percent year-on-year. The Group is now targeting a 14 percent growth in export value this year over last year's revenues.

Vinatex contributes about 17 percent to Vietnam's overall textile and garment industry exports.

Fibre2fashion News Desk - India

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